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Annual Action Plans Amendments FY 2008, FY2009THE CITY ©F L~UB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendments to FY2008 and FY2009 Annual Action Plans DATE: August 11, 2008 Dubuque ~~~~~ 1 2007 Housing and Community Development Director David Harris is recommending approval of an amendment to the Fiscal Year 2008 and Fiscal Year 2009 Annual Action Plan for the Community Development Block Grant Program. The proposed amendments will reallocate funds to the Five Points Building Relocation project, the Commercial/ Industrial Building Rehab Loan program, and adjust the administrative and public service caps for the FY 2009 Annual Plan to conform to HUD requirements. Five Points Building: Gronen Properties is requesting the Commission allocate $265,500 in CDBG funds for the relocation of the Five Points Building at 397 East 20th Street to the vacant lot at the southwest corner of 10th and Main Streets. The project is an economic development activity that will remove slum and blight. The FY 2008 Annual Plan would be amended to move the funds from the previously approved Cottingham and Butler project into the FY 2009 Annual Plan. Cottingham and Butler has withdrawn their request for $320,000 to demolish the former House of China building and construct a new building. The proposed amendment to the FY 2008 Plan provides for reallocation of $265,500 to the Five Points Building Relocation project and $54,500 to the Commercial/Industrial Building Rehab Loans and Revolving Loan Fund project, for a total of $320,000 in the FY 2009 Annual Action Plan. CDBG Caps In addition, HUD has informed us that the FY 2009 Annual Plan exceeds our administrative and public service caps. In reviewing our FY 2009 Annual Action Plan, HUD has determined that the Neighborhood Development Services and Staff activity should be included as an administrative expense. This activity is funded with $84,919 in CDBG funds in the 2009 Annual Plan. The activity had been eligible as technical assistance for neighborhood revitalization in low and moderate income areas. This activity has not been included under the 20% administrative cap since it was initiated in 1995, but HUD is now questioning this practice. HUD has stated that if the neighborhood development activity is considered as building capacity for the neighborhood organizations, then it should be included as a planning activity under our administrative cap. Therefore we will exceed our administrative cap by $80,212 and will need to amend our FY 2009 Annual Plan to facility this change. The proposed amendment will move the administrative funding from Economic Development Services and Staff ($64,516) and Planning Administration ($16,183) to the CDBG funded Homeowner Rehab Program. The funding for these administrative activities in FY 2009 will be moved from the General Funds that had been budgeted for the Homeownership Grants for Targeted Neighborhoods. This will put Neighborhood Development Services and Staff under the administrative cap and meet HUD requirements. The fifteen percent (15%) public service cap is determined by the FY 2009 CDBG entitlement ($1,209,427) plus program income (revenue) from FY 2008. Based on our revenues for FY2008, HUD has determined that we will be over our projected public service cap. Our revenues were less than projected and therefore have affected our public service budget greater than we anticipated. In order to adjust the public service cap, the proposed FY 2009 amendment will reduce the Community Partnership (cp2) grant program to $34,219, the total of the committed grant awards for Fy2009. The Neighborhood Support Grant activity will retain its allocation of $19,653 but $8,778 will be allocated to public service activities and $10,875 to public facility improvements, again in order to meet HUD cap requirements. The Community Development Advisory Commission held a public hearing on July 30, 2008. At the public hearing, the Commission heard the request from John Gronen to fund the Five Points Building Relocation project. The Commission voted to approve the amendments and forward to the City Council. concur with the recommendation and respectfully request Mayor and City Council approval. chael C. Van Milligen MCVM/Iw Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development THE CITY OF DUB E Masterpiece on the Mississippi To: Michael ~ Milligen, City Manager From: David Ha~rr?~ Housin and C mm g o unity Development Subject: Amendments to FY 2008 and FY 2009 Annual Action Plans Date: August 1, 2008 Dubuque i 2007 INTRODUCTION The purpose of this memorandum is to request the City Council's approval of the attached resolution approving an amendment to Fiscal Year 2008 and Fiscal Year 2009 Annual Action Plans for the City's Community Development Block Grant (CDBG) program. The proposed amendments will reallocate funds to the Five Points Building Relocation project, the Commercial/Industrial Building Rehab Loan program, and adjust the administrative and public service caps for the FY 2009 Annual Plan to conform to HUD requirements. DISCUSSION Five Points Building Gronen Properties is requesting the Commission allocate $265,500 in CDBG funds for the relocation of the Five Points Building at 397 East 20th Street to the vacant lot at the southwest corner of 10th and Main Streets. The project is an economic development activity that will remove slum and blight. The FY 2008 Annual Plan would be amended to move the funds from the previously approved Cottingham and Butler project into the FY 2009 Annual Plan. Cottingham and Butler have withdrawn their request for $320,000 to demolish the former House of China building and construct a new building. The proposed amendment to the FY 2008 Plan provides for reallocation of $265,500 to the Five Points Building Relocation project and $54,500 to the Commercial/Industrial Building Rehab Loans and Revolving Loan Fund project, for a total of $320,000 in the FY 2009 Annual Action Plan. CDBG Caps In addition, HUD has informed us that the FY 2009 Annual Plan exceeds our administrative and public service caps. In reviewing our FY 2009 Annual Action Plan, HUD has determined that the Neighborhood Development Services and Staff activity should be included as an administrative expense. This activity is funded with $84,919 in CDBG funds in the 2009 Annual Plan. The activity had been eligible as technical assistance for neighborhood revitalization in low and moderate income areas. This activity has not been included under the 20% administrative cap since it was initiated in 1995, but HUD is now questioning this practice. HUD has stated that if the neighborhood development activity is considered as building capacity for the neighborhood organizations, then it should be included as a planning activity under our administrative cap. Therefore we will exceed our administrative cap by $80,212 and will need to amend our FY 2009 Annual Plan to facilitate this change. The proposed amendment will move $84,919 of administrative funds from Economic Development Services and Staff ($64,516) and Planning Administration ($16,183) to the CDBG funded Homeowner Rehab Program. The funding for these administrative activities in FY 2009 will be moved from the general funds that had been budgeted for the Homeownership Grants for Targeted Neighborhoods. This will put Neighborhood Development Services and Staff under the administrative cap and meet HUD requirements. The fifteen percent (15%) public service cap is determined by the FY 2009 CDBG entitlement ($1,209,427) plus the program income (revenue) from FY 2008. Based on our revenues for FY 2008, HUD has determined that we will be over our projected public service cap. Our revenues were less than projected and therefore have affected our public service budget greater than we anticipated. In order to adjust the public service cap, the proposed FY 2009 amendment will reduce the Community Partnership (cp2) grant program to $34,219, the total of the committed grant awards for FY 2009. The Neighborhood Support Grant activity will retain its allocation of $19,653 but $8,778 will be allocated to public service activities and $10,875 to public facility improvements, again in order to meet HUD cap requirements. Public notices regarding the proposed changes were published in the Telegraph Herald, and the City of Dubuque website. These notices advised the public of the intent of the amendments and invited comment at or before the public hearing. This initiated the 30- day public comment period as required in the Citizen Participation Plan. The Community Development Advisory Commission held a public hearing on July 30, 2008. At the public hearing, the Commission heard the request from the John Gronen to fund the Five Points Building Relocation project. The Commission voted to approve the amendments and forward to the City Council. RECOMMENDATION It is recommended that the City Council approve the amendments to the FY 2008 and FY 2009 Annual Plans as shown in Exhibits A & B for the use of Community Development Block Grant funds. ACTION STEP The action requested of the City Council is to approve the Mayor's execution of the attached resolution, approving Fiscal Year 2008 Annual Action Plan Amendment 4 and FY 2009 Annual Action Plan Amendment 2 for Community Development Block Grant activities. Prepared by Aggie Tauke, Community Development Specialist F:\USERS\ATAUKE\CDBG\AnnualPlan\FY 09\Council FY 09 Amend2. memo.doc RESOLUTION NO. 280-08 RESOLUTION APPROVING FISCAL YEAR 2008 ANNUAL ACTION PLAN AMENDMENT 4 AND FISCAL YEAR 2009 ANNUAL ACTION PLAN AMENDMENT 2 FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. Whereas, the City of Dubuque has prepared and approved Annual Plans for Fiscal Year 2008 (Program Year 2007) and Fiscal Year 2009 (Program Year 2008), and Whereas, the City now desires to amend said Annual Plans to reallocate funds for economic development activities and to adjust the administrative and public service caps; and Whereas, said amendment is a substantial amendment as provided in the City's Citizen Participation Plan and must therefore be approved by resolution of the City Council after a public hearing by the Community Development Advisory Commission; and Whereas, the City held a public comment period beginning June 18, 2008 with publication in the Telegraph Herald and on the City website; and Whereas, the Community Development Advisory Commission reviewed the proposed amendments on July 30, 2008 and voted to approve said amendments and to recommend approval by the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Fiscal Year 2008 (Program Year 2007) Annual Plan for the Community Development Block Grant (CDBG) program hereto attached as Exhibit A is hereby approved. Section 2. That the Fiscal Year 2009 (Program Year 2008) Annual Plan for the Community Development Block Grant (CDBG) program hereto attached as Exhibit A is hereby approved. Section 3. That the City Manager is hereby authorized and directed to submit a copy of this resolution to the U. S. Department of Housing and Urban Development. Passed, approved and adopted this 18 thday of August, 2008. Roy D Buol, Mayor Attest:Jeanne F. Schneider, City Clerk FY 2008 ANNUAL PLAN -Amendment 4 Exhibit A PROJECTED SOURCES FY 2008 CDBG Entitlement 1,252,136 Projected Program Income 454,725 ED Revolving Loan Funds 30,659 Health Ins Savings 7,513 FY 08 Subtotal 1,745,033 Prior Year CDBG Balance 1,252,729 Lump Sum Balance s5,ao1 FY 07Subtotal 1,318,130 Available Funds 3,os3,1s3 Approved by CDAC 11/28/07 and 1/9/08 Amended Housing Development Programs: FY08 Plan First Time Homebuyer Program 130,000 Historic Preservation Rehab Grant 29,918 Homeowner Rehab Program 408,813 Housing Administration 58,954 Housing Code Enforcement 145,415 Housing Rehabilitation Services and Staff 347,371 Housing Trust 96,173 Lead Paint Hazard Abatement Project 30,000 Purchase/Rehab/Resale DREAMS 67,336 Rental Unit Rehabilitation 186.220 Housing Totals 1,500,200 Economic Development Programs: Commercial/Industrial Building Rehab Loans &RLF 14,660 Commercialllndustrial Building Rehab (Cottingham 8 Butler) 0 Demolition 8~ Construction (Cottingham 8~ Butler) 0 E.D. Financial Assistance Program 8 RLF 183,959 Economic Development Services and Staff 88.970 Economic Development Totals 287,589 Neighborhood and Community Development Programs: Accessible Curb Ramps 90,000 Bishop Block Community Room 0 Child Care Resource/Referral-Project Concem 9,834 Community Partnership Program (CP2)' 59,894 Dubuque Dispute Resolution Center 2,000 Dubuque Rescue Mission Job Readiness Program 4,622 Information & Referral - Project Concern 27,910 Leadership Training 2,177 Multicultural Center- Public Facility Improvement 180,000 Neighborhood Development Services and Staff 84,145 Neighborhood Infrastructure Improvements 52,056 Neighborhood Recreation Program 121,185 Neighborhood Support Grants 40,444 Senior Center 27,116 St Mark Community Center Rehab 0 Washington Tool Library 17,060 Washington Neighborhood Park 21,873 Zoning Inspection/Enforcement 13.000 Neighborhood 8 Comm. Develop. Totals 753,318 Planning & Administration Programs: CDBG Admin. Services and Staff 99,829 Finance 4,277 City Planning Services and Staff Planning Administration 15,898 Planning City Planning 82.054 Planning and Administration Totals 202,058 Contingency (Uncommitted funds) Totals 2,743,163 SHELTER PLUS CARE GRANT $536,520 OBTAINED FOR HOUSING ASSISTANCE, WITH SUPPORTIVE SERVICES, FOR DISABLED F:IUSERSIATAUKE\CDBGWnnualPlan\FY 09\{000ncil FY08 Amd 4 8 FY09 Amd 2.xlsl( FY 2009 CDBG ANNUAL ACTION PLAN AMENDMENT 2 FY 2009 ACTION PROJECTED SOURCES PLAN Estimated Entitlement 1,209,427 Program Income 434,595 ED Revolving Loan Fund 25,192 Transferred from FY 2008 320,000 Total Sources 1,989,214 Exhibit B FY 2009 Housing Development Programs: Amend 2 First Time Homebuyer Program 70,000 Homeowner Rehab Program 329,541 Housing Administration Housing Code Enforcement Housing Rehabilitation Services and Staff Lead Paint Hazard Abatement Project Purchase/Rehab/Resale DREAMS Rental Unit Rehabilitation Economic Development Programs: 61, 226 148,276 307,077 60,000 10,000 35,000 Housing Totals 1,021,120 Commercial/Industrial Building Rehab Loans & Revolving Loan Fund 54,500 E.D. Financial Assistance Program & Revolving Loan Fund 24,286 Five Points Building Relocation 265,500 Economic Development Services and Staff 0 Neighborhood and Community Economic Development Totals 344,286 Development Programs Accessible Curb Ramps 35,000 Child Care Resource/Referral-Project Concern 9,098 Community Partnership Program (CP2)* 34,219 Dubuque Dispute Resolution Center 1,000 Information & Referral - Project Concern 25,821 Leadership Training 2,000 Neighborhood Development Services and Staff 84,919 Neighborhood Infrastructure Improvements 40,000 Neighborhood Recreation Program 128,160 Neighborhood Support Grants 19,653 Senior Center 25,000 Washington Tool Library 15,500 Zoning Inspection/Enforcement 13.000 Neighborhood 8~ Comm. Develop. Totals 433,370 Planning and Administration CDBG Admin. Services and Staff 105,205 Finance 4,528 City Planning Services and Staff Planning Administration 0 Planning City Planning 77,493 Planning and Administration Totals 187,226 Contingency 3.212 TOTAL CDBG 1,989,214 F:\USERSWTAUKEICDBGL4nnualPlanlFV 09yCoundl FY08 Amd 4 8 FY09 Amd 2.ds]FY 09 Amd 2